| I.   | PURPOSE |
|----------------|---------|

| 1.   | reviewing      the financial reports and other financial and related information provided      by the Company to the Securities and Exchange Commission or the      public; |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | reviewing      the Company’s system of internal controls regarding finance, accounting,      legal compliance and code of business conduct that management and the      Board have established; |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | reviewing      the Company’s auditing, accounting and financial reporting      processes; |
|----------------|-------------------------------------------------------------------------------------------------|

| 4.   | reviewing      and appraising with management the audit efforts of the Company’s      independent accountants; and |
|----------------|--------------------------------------------------------------------------------------------------------------------------|

| 5.   | providing      an open avenue of communication among the independent accountants,      financial and senior management, the internal auditing department and the      Board of Directors. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| II.   | COMPOSITION |
|-----------------|-------------|

| III.   | MEETINGS |
|------------------|----------|

| IV.   | RESPONSIBILITIES      AND DUTIES |
|-----------------|----------------------------------|

| 1.   | Review      and reassess, at least annually, the adequacy of this      Charter.  Make recommendations to the Board, as conditions      dictate, to update this Charter. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 2.   | Review      with management and independent accountants the Company’s annual financial      statements included in the Form 10-KSB prior to its filing and prior to      the release of earnings, including major issues regarding accounting and      auditing principles and practices as well as the adequacy of the Company’s      internal controls that could significantly affect the Company’s financial      statements.  Discuss with the independent accountants the      matters required to be discussed by Statement of Auditing Standards No.      61, as amended. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 3.   | Review      with management and the independent accountants the Company’s quarterly      financial statements included in the Form 10-QSB prior to its filing and      prior to the release of earnings.  The Chairperson of the Audit      Committee may represent the entire Audit Committee for purposes of this      review. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 4.   | Review      with the independent accountants the recommendations included in their      management letter, if any, and their observations regarding the Company’s      financial and accounting procedures.  On the basis of this      review make recommendations to the Board for any changes that seem      appropriate.  Review any changes required in the planned scope      of the audit and the internal auditing department’s responsibilities,      budget and staffing. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 5.   | Review      the performance of the independent accountants and make all determinations      regarding the appointment or termination of the independent      accountants.  The Committee has the ultimate authority and      responsibility to select, evaluate and, where appropriate, replace the      independent accountants.  The independent accountants are      ultimately accountable and shall report directly to the Committee for such      accountant’s review of the financial statements and internal controls for      the Company.  The fees to be paid to the independent accountants      for auditing and non-auditing activities shall be reviewed and approved by      the Committee.  On an annual basis, the Committee shall review      and discuss with the accountants all significant relationships that the      accountants have with the Company to determine the accountants’      independence. |
|----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 6.   | Oversee      independence of the accountants by: |
|----------------|--------------------------------------------------|

| ·   | receiving      from the accountants, on a periodic basis, a formal written statement      delineating all relationships between the accountants and the Company      consistent with Independence Standards Board Standard  1; |
|--------------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | reviewing,      and discussing, with the Board, if necessary, and the accountants, on a      periodic basis, any disclosed relationships or services between the      accountants and the Company or any other disclosed relationships or      services that may impact the objectivity and independence of the      accountants; and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | take      necessary action to satisfy itself of the accountants’      independence. |
|--------------------|-------------------------------------------------------------------------------------------|

| 7.   | Pre-approve      all auditing and non-auditing services to be provided by the accountants      to the Company.  Non-auditing services need not be pre-approved      if: |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | amounts      for all non-audit services aggregate less than five percent of the amounts      paid for audit services during the fiscal year;  and |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the      non-audit services were not believed to be non-audit services at the time      of engaging the services; and |
|--------------------|-----------------------------------------------------------------------------------------------------------------------|

| ·   | such      non-audit services are brought to the attention of the Committee and      approved by the Committee prior to completion of the audit for the fiscal      year; and |
|--------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 8.   | In      consultation with management and the independent accountants review the      integrity of the Company’s financial reporting processes, both internal      and external. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 9.   | Establish      regular systems of reporting to the Audit Committee by management and the      independent accountants regarding any significant financial reporting      issues and judgments made in connection with management’s preparation of      the financial statements and any significant difficulties encountered by      the independent accountants during the course of its review or audit,      including any restrictions on the scope of work or access to required      information. |
|----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 10.   | Review      and resolve any disagreement among management and the independent      accountants in connection with the preparation of the financial      statements. |
|-----------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 11.   | Consider      and approve, if appropriate, major changes to the Company’s auditing and      accounting principles and practices as suggested by the independent      accountants or management.  Review with the independent      accountants and management the extent to which changes or improvements in      financial or accounting practices, as approved by the Audit Committee,      have been implemented. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 12.   | Meet      with the independent accountants prior to the annual audit to review the      planning and staffing of the audit. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------|

| 13.   | Meet      periodically with management to review the Company’s major financial risk      exposures and steps management has taken to monitor and control such      exposures. |
|-----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 14.   | Review,      at least on an annual basis, with the Company’s counsel any legal matter      that could have a significant impact on the Company’s financial      statements, the Company’s compliance policies, and any material reports or      inquiries received from regulators or governmental    agencies. |
|-----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 15.   | Establish      procedures for the receipt, retention and treatment of complaints received      by the Company regarding accounting, internal accounting controls, or      auditing matters, including means for confidential and anonymous      submission by employees of the Company of concerns regarding questionable      accounting or auditing matters. |
|-----------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 16.   | Advise      the Board with respect to the Company’s policies and procedures regarding      compliance with applicable laws andregulations. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------|

| 17.   | Review      the appointment and replacement of internal auditing personnel, review      reports to management prepared by the internal auditing department and      management’ s responses, and review cooperation of the internal auditing      department with the independentauditors. |
|-----------------|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| 18.   | Retain      independent counsel and other advisers the Committee deems necessary to      carry out its duties. |
|-----------------|----------------------------------------------------------------------------------------------------------------|

| 19.   | Report      through its Chairperson to the Board following meetings of the Audit      Committee. |
|-----------------|--------------------------------------------------------------------------------------------------|

| 20.   | Maintain      minutes or other records of meeting and activities of the Audit      Committee. |
|-----------------|-----------------------------------------------------------------------------------------------|